Change management for ERP implementation: a case study

In our experience, successful change management in ERP implementation requires much more than replacing legacy software or adjusting IT systems. True transformation focuses on people and processes. Success stems from a structured, purposeful approach designed to guide individuals, teams, and organizations from their current state to a clearly defined future state.

ERP change management in action

As an example, we partnered with a $100 million global medical testing equipment manufacturer that was looking to restart a stalled ERP project. The company was grappling with this failed project for more than eight years - one of the lengthiest “failures” we’ve seen!

Get more change management advice with this 11-step guide to ERP implementation success

The initial project faltered because no consensus existed around a future state, a key misstep. The team lacked consistent direction about the project’s goals: Should they replicate current processes or design improved best practices for the future?

Several factors contributed to the project's failure:

• Siloed decision-making due to uncoordinated team activities
• Insufficient resource allocation for the project team
• Ambiguity around project objectives and deliverables

Ultimately, the absence of a cohesive strategy around change management for ERP implementation derailed progress.

Finding easy wins in ERP change management

From hundreds of projects, one insight stands clear: ERP change management is not a single project phase. It must be embedded within the project's core methodology, culture, and every phase of the plan. Awareness of change promoters, adopters, influencers, and resistors must be continuous as the organization transitions toward its future state.

One of the most effective strategies? Establish a project charter early.

A well-crafted charter serves as the guiding "map" for the entire initiative. It articulates the compelling business case for change and answers the critical question: "We are undertaking this project because..."

Everyone involved must align with this vision from day one. Unfortunately, many organizations skip this vital step, setting the stage for confusion and misalignment later.

Common change management pitfalls

An ERP selection and implementation project usually introduces role adjustments or shifts in responsibilities. Some employees may find their workloads increase, while others might experience reductions. Either change can create unease.

A common pitfall is overemphasizing technology i.e, system infrastructure, features, or data at the expense of people and processes. Leadership must avoid this trap. To succeed, it’s essential to continually communicate the "why" of the project and provide regular training and education.

Change management in ERP implementation demands early investments in:

• Building the right project team
• Allocating adequate resources
• Securing organizational commitment

These elements allow staff to act as change agents rather than blockers or passive observers.

Warning signs to watch for

Returning to the case study, an early warning sign was the aforementioned absence of a clearly articulated future state vision.

Without stakeholder alignment around future business processes, system expectations, and a transformation roadmap, the project stagnated.

This is a common thread among case studies in change management, repeatedly emerging as a root cause of failure.

What’s the secret to ERP change management success?

To emphasize the point made here, implementing or upgrading an ERP system is a good opportunity for an organization to create lasting business change within an organization. That's why change management strategies are so critical.

From our work with hundreds of manufacturers and distributors, the lesson is clear: ERP change management best practices involve embedding change management within every project phase, not treating it as an isolated task.

We maintain constant focus on:

• Promoting engagement among stakeholders
• Identifying and addressing resistance early
• Encouraging adoption through consistent communication

If there is a "secret," it lies in proactively engaging, educating, and involving all stakeholders throughout the journey.

Further insights into real-world examples of successful change management and enterprise technology transformation can be found at Ultra Consultants.